Backtrack, dear colleagues. The ECB was forced to set a emergency meeting in Frankfurt to curb the explosion of the spread, jumped to 250 points. All this, less than a week after directorate decisions on the rate hike. The mere news of the summit, which began at 11, allowed tensions to cool at the start of another hot day which will culminate tonight with the announcement of the US rate hike by the Fed.
- The spread drops to 216 points. The yield of the ten-year BTP drops to 3,92% against 4,27% yesterday, the highest since 2014.
- Piazza Affari rebounds, +2,7% at 12.30, driving the prices of bank stocks.
Spread, the ECB shield: this is how it will be
The surprise meeting (the president of the Bundesbank was in Milan for a conference canceled at the last minute) is expected to end shortly after 13 pm with the publication of a press release. It is taken for granted that the bankers, taken by surprise by the reaction, albeit predictable, of the market, will make an explicit commitment to reinvest the maturing bonds of the Pepp plan. But, probably. something more will be needed to remedy last week's error of judgment. The Belgian member of the council, Pierre Wunsch, mimicking Mario Draghi, says that the ECB is ready to put in place everything needed to prevent the fragmentation of the euro area. More explicit Isabel Schnabel, a German member of the board, yesterday provided some general indications on the anti-spread bazooka. It will not be a country-by-country intervention plan, but will be to all intents and purposes a global system of surveillance, control and action based on a series of quantitative parameters. In this way, legal disputes should be avoided.
Spread, the ECB summit gives wings to the Stock Exchange
While awaiting more concrete indications, Banks, Insurance Companies and Asset Management are highlighted in Milan: Intesa +5%, Banco Bpm +3,6%. B for Bank +4%. It's at the head Fineco Bank +7%. Generali and Unicredit also rebound +4%: Carlo Messina, CEO of Intesa Sanpaolo said that Italy's fundamentals do not justify a spread over 100-150 points over Germany.
Positive market response (+2%) al Italgas plan to 2028. The gas distribution company expects to invest 8,6 billion euros, an increase of 700 million euros compared to the previous plan. The investment program in Italy is 4,5 billion euros, below expectations. 1,8 billion euros have been allocated for the gas tenders.
Still rallying Saipem +2,4%. Morgan Stanley raises the target price to 98,57 euros.
Leonardo +3%. Poland intends to buy several AW149 military helicopters, built by Leonardo. Fly Fincantieri +5% which kicked off the buy-back plan.
